Best European Destination 2025: What Does It Mean for the Future of Investing in Croatian Real Estate?

A Forbes article from March this year announced Croatia as the best European destination for 2025. The list of top destinations to visit, created by travellers for travellers, placed Croatia at the very top-not only for many travellers, but also for investors.

Alongside Italy, Spain, Greece, and Germany-countries long established in the minds of many not only as tourist destinations but as cradles of culture-Croatia, a small country, has earned both a great honour and a major opportunity by securing first place. We shouldn’t forget that Croatia is a nation of only four million people, which gained clear outlines on geopolitical maps just thirty years ago with the achievement of independence.

One might ask how Croatia managed to win the hearts of so many. Yet, when its beauty leaves you speechless, any question becomes unnecessary.

Croatia’s ranking as the most desirable destination is based on responses from as many as 1.2 million travellers from 139 countries worldwide.

Why Croatia Won the Title of Best Destination for 2025

Anyone unfamiliar with little Croatia may wonder how such a small country surpassed many giants. For those of us who witness its beauty daily, the answer is clear.

Unlike well-established countries such as Italy and Spain, Croatia has managed to preserve its authenticity and continues to resist the pressures of mass tourism. It remains full of hidden, fairy-tale corners ideal for fully enjoying nature’s beauty.

Croatia is one of the safest countries in Europe, as confirmed by numerous studies. Crime rates are extremely low, which is a major advantage in these turbulent times. This safety is one of the biggest motivators for both travellers and investors, as it makes Croatia ideal for vacation and living-making it a top choice for investment.

Thanks to its position, influenced by both East and West, Croatia has developed unique cities such as Split, Zadar, Šibenik, Pula, and Zagreb, each with its own story and historical and cultural evolution. Croatia is home to ten UNESCO-protected sites.

It is also distinguished by breathtaking nature and landscapes shaped by diverse climates-from Mediterranean to mountain to continental. These traits have created a wonderful mentality and the hospitality of its people, who welcome guests with open arms and tables full of premium olive oil, wine, and exceptional cuisine. Many tourists, upon visiting Croatia, feel as though they’ve found a lost paradise.

Considering all of the above, it becomes clear why people choose to buy houses, apartments and luxury villas here; everyone wants a piece of paradise for themselves.

Growth of Investment and New Trends in the Real Estate Market

Every year we witness Croatia’s increasing popularity as a tourist destination, and just when we think the numbers have reached their peak, another record is broken. Each year brings more arrivals, overnight stays, media coverage, and worldwide interest.

Global visibility has led to increasing demand for long-term apartment rentals and tourist accommodation. More and more travellers choose to invest in their own property in Croatia because it’s a place they want to return to. This growing interest has directly influenced rising real estate prices, particularly along the coast.

The Croatian coastline is one of the most indented in Europe, encompassing more than 6,000 kilometres of coast when including islands and peninsulas. Foreign investors focus not only on location-though it’s hard to find a bad one in Croatia-but also on quality of life, which remains consistently high and drives demand even outside peak season.

Croatia’s real estate market is continually developing, making it a safe option for investors, as no one wants to invest in a stagnant market. There has been a rise in investors from Central European countries such as Germany, Austria, Poland, and Slovakia, as well as from overseas-particularly the United States.

Unlike past investments, recent years show a notable increase in demand for luxury properties. Sparked in part by the global pandemic in 2021, many have become more aware of the value of enjoying beauty, comfort, and luxury.

As a result, investments are flowing into modern villas with pools, which are regularly found in prime locations, as well as into modern apartments, sustainable developments, and wellness resorts.

Demand is also rising for properties in the interior of the country, where Croatia’s beautiful mountainous side is still being discovered. Such locations are ideal for enjoying nature and peace, making them attractive to digital nomads and anyone working from the comfort of their home.

What to Expect in 2026: Opportunities for Buyers and Investors

Croatia enters 2026 on the wings of a highly successful season and growing GDP, confirming its reputation as a country with stable growth and strong investment potential. The coming year will be an ideal period for buyers and investors to take advantage of a rising market before prices reach a new level.

The most recommended locations for investment are those where tourism, infrastructure, and quality of life converge. Accordingly, significant investment growth is expected in Dalmatia (particularly central and southern regions) and Istria.

Interest is also expected to grow for rural and island properties, which reflect the trend of returning to nature and offer peace and privacy. Prices in rural areas are still low, while potential is immense.

Next year is expected to bring even more visitors, including those with higher purchasing power and travellers from distant parts of the world. An increase in digital nomads choosing long-term stays is also anticipated, along with an extension of the tourist season-something Croatia is well-positioned for thanks to its favourable climate.

So, to paraphrase a well-known saying-the best time to invest in Croatia is 2025, and the second best is 2026. Those who step into this fast-growing market now will become part of that growth.